Review Mortgage Lenders

Mortgage Sense

Episode 76 - Mortgage Sense on Chai Time Money Sense TV on Chai Time. Tara Thind from Chai Time, Channel M (Omni TV) interviews Jessi on a number of topics affecting ...

Does it make sense to buy mortgage points by refinancing?

I know that points reduce the interest rate and they can be deducted during the life of the mortgage, but does it really make sense financially to buy mortgage points or do they cost more than the benefit they offer?

I dont see why paying 1 point to lower the interest rate 1/8% makes sense. People say its worth it when you stay long enough to meet the break even point; where the amount of interest saved equals the amount in points you spent.